UK government will buy tech to boost AI sector in $130M growth push

LONDON, ENGLAND - NOVEMBER 18: Secretary of State for Work and Pensions Liz Kendall leaves Downing Street following the weekly cabinet meeting on November 18, 2025 in London, England. (Photo by Leon Neal/Getty Images) Credit: Leon Neal / Staff

The UK government will promise to buy emerging chip technology from British companies in a 100 million pound ($130 million) bid to boost growth by supporting the artificial intelligence sector.

Liz Kendall, the science secretary, said the government would offer guaranteed payments to British startups producing AI hardware that can help sectors such as life sciences and financial services.

Under a “first customer” promise modeled on the way the government bought COVID vaccines, Kendall’s department will commit in advance to buying AI inference chips that meet set performance standards.

Kendall acknowledged that 100 million pounds “sounds small compared to the billions being spent” in the US and China but argued it ...